Based on following answer the question.
Bharat Ltd. has been registered with the capital as ₹50,00,000 divided into 5,00,000 shares of ₹10 each. 3,00,000 shares of ₹10 each are offered by the company to the public for subscription, amount payable as ₹4 on application, ₹3 on allotment and the balance on call. The company received application for 2,70,000 shares and the company finalised the allotment accordingly. The company did not make the final call. The Company received all money excepts allotment money on 5,000 shares held by Rahul. His shares were forfeited.
Determine the amount which Company may ask from shareholders on calls.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) - ₹7,95,000.
Application received = 2,70,000
Rahul shares are forfeited and after that call amount will be called by company.
Remaining shares after forfeiture = 2,70,000 - 5,000
= 2,65,000
Call money called up on = 2,65,000 shares
Call money per share = 10-7
= ₹3
Amount called up = 2,65,000 x 3
= ₹7,95,000